/raid1/www/Hosts/bankrupt/TCRLA_Public/020607.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Friday, June 7, 2002, Vol. 3, Issue 112

                           Headlines


A R G E N T I N A

BANCO GALICIA: Refinancing Debts Maturing In August
IMPSA: S&P Will Reassess Credit Quality Following Debt Exchange
MULTICANAL SA: Hires J.P. Morgan to Restructure Debt Blueprint
TELEFONICA ARGENTINA: Deadline for Bond Swap Set for June 21


B E R M U D A

ANDERSEN: Pays Remaining Balance of US$217 Million Settlement
FOCUS INSURANCE: Issues Notice of Final Dividend On July 22
FOSTER WHEELER: Agrees to Basic Terms of New Loan Facilities
TYCO INTERNATIONAL: Analysts Predict Boca Raton-based Unit Sale


B O L I V I A

RBG RESOURCES: Sells Vinto Tin Smelter For US$24 Million


B R A Z I L

AES SUL: Rationing Prompts Moody's Review For Possible Cut
BCI: Yet To Sell Two Investments Before Winding Down Operations
BCI: Sale May Lead to Moody's Debt Rating Upgrade
ELETROPAULO METROPOLITANA: Moody's Reviewing For Possible Cut
ENRON: Creditors Agree To Renegotiate Debt With Italian Bank
PREVI: Court Rules On Government Administration


C O L O M B I A

AES GENER: Postpones Asset Sale Pending Better Economic Times


M E X I C O

AEROMEXICO: Forecasts Continued Negative Results
BURLINGTON INDUSTRIES: Mexican Ops Survive Restructuring
FAR-BEN: Investment Fund Buys Unspecified Stake For MXN553.5 Mln
RAINTREE RESORTS: Misses Interest Payment; S&P Lowers to Default


     - - - - - - - - - -


=================
A R G E N T I N A
=================

BANCO GALICIA: Refinancing Debts Maturing In August
---------------------------------------------------
Gasping Banco de Galicia y Buenos Aires SA is offering US$1
billion worth of new five-year 7.875% bonds to refinance
outstanding notes that will mature on August 26.

Dow Jones Newswires says the private commercial bank, Argentina's
largest, filed the proposed bond issue with the Buenos Aires
Stock Exchange Wednesday.

Under the plan, the company gives existing noteholders two
options: Those who will opt to swap US$1,000 outstanding coupons
for only US$800 worth of new 2007 bonds will receive US$200 cash
payment plus US$66.50 in overdue interest payments.

The second option offers a one-to-one swap between the maturing
and the new coupons, but the noteholders will only receive US$450
in cash for each US$1,000 coupon they swap.  They will receive,
though, the same US$66.50 in overdue interest.

Citing documents filed by the bank, the report said Mellon
Investor Services LLC, a division of Mellon Financial Corp.
(MEL), will manage the transaction.

The company is still reeling from the bank run it suffered last
year and the peso devaluation.  Early this year, the Galacia
received an ARS800 million boost from the central bank and the
country's bank insolvency fund.  The firm, however, failed to
convince the government to convert these credits into 50% equity
in the bank.

The bank, a unit of Grupo Financiero Galicia SA, is now turning
to its private creditors to realize its plan to swap US$300
million in debt into equity and fresh capital.

CONTACT:

BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
Tte. Gral Juan D. Peron 407
1038 Buenos Aires, Argentina
Phone: +54-11-6329-0000
Fax: +54-11-6329-6100
Home Page: http://www.bancogalicia.com.ar
Contacts:
Eduardo J. Escasany,  Chairman and Chief Executive Officer
Sergio Grinenco, Chief Financial Officer

Corporate Communications
Phone: (54 11) 6329 6439
Fax:(54 11) 6329 6000 ext.: 2041

Representative Office:
Buenos Aires
Reconquista 144, piso 17
(1003) Buenos Aires, Argentina
Phone: (54-11) 4343-5200/5303/5162
Fax: (54-11) 4343-6576

New York Branch
300 Park Avenue, 20th Floor
New York, NY 10022
Phone: (1-212) 906-3700
Fax: (1-212) 906-3777

GRUPO FINANCIERO GALICIA S.A.
Teniente General Juan D. Per>n 456, Piso 3
1038 Buenos Aires, Argentina
Phone: (54 11) 4343 7528 / 9475
Home Page: http://www.gfgsa.com
Contacts:
Eduardo J. Escasany,  Chairman and CEO
Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires


IMPSA: S&P Will Reassess Credit Quality Following Debt Exchange
---------------------------------------------------------------
On May 30, 2002, Industrias Metaluricas Pescarmona S.A.I.C.y.F.
announced the conclusion of the exchange offer on its rated
US$150 million 9 1/2% notes due May 31, 2002, (outstanding
US$137.62 million and rated 'D'), with approximately 91%
bondholders acceptance. The new non-rated notes amount to
US$126.3 million. About 93% of the bondholders opted for the
step-up guaranteed senior notes with US$1,050 of face value at a
5.75% interest rate (with a step-up rate up to 8.75% level in May
2006) maturing in November 2011. The remaining bondholders
selected guaranteed senior notes of face value US$500 at a 11.5%
rate, maturing in 2007.

The step-up notes amortize principal in five equal installments
starting in November 2007 while discounted notes in four
installments starting in November 2004, both not bearing interest
until May 2003. Additionally, the new notes include an
extraordinary payment (of US$75 for each US$1,000 for the step-up
notes and of US$150 for the discounted notes) and are guaranteed
by one of the company's subsidiaries (that has the shares related
to IMPSA's largest project, the CBK Power Project, a build,
repair, operate, and transfer contract in the Philippines).

Standard & Poor's will reassess the credit quality of the company
in the next few weeks.

Owned by Argentine businessman Enrique Pescarmona, IMPSA operates
in 20 countries across Asia, Europe and Latin America and employs
as many as 6,000 workers worldwide. The Company makes products
from hydro-mechanical equipment to auto parts to wine. IMPSA also
sells auto parts to Ford Motor Co., Renault SA and Volkswagen AG.

In addition to building power plants, it generates electricity
and handles waste management. About 97 percent of IMPSA's revenue
comes from overseas operations.

CONTACT:  INDUSTRIAS METALURGICAS PESCARMONA SA (IMPSA)
          Rodriguez Pena 2451
          Godoy Cruz, Mendoza Argentina
          Phone: 54 1 315 2400
          Fax: 54 1 315 2388
          Home Page: http://www.impsa.com.ar/index.html
          Contact:
          Roberto Arancibia
          Tel: +54-261 4131300
          Fax. +54-261 4131416 - 4131423
          E-mail: arancibi@impsa.com.ar


MULTICANAL SA: Hires J.P. Morgan to Restructure Debt Blueprint
--------------------------------------------------------------
Cable-TV network Multicanal SA, which has already defaulted on
interest payments twice this year, has hired J.P. Morgan
Securities Inc. to draft its debt plan, says Dow Jones Newswires.

A delicate operation, JPM will have to craft a plan that
effectively exludes international creditors from taking majority
control of the network.  The report says Argentina's Congress is
currently railroading legislation aimed at preventing foreign
companies from taking controlling interest in "cultural" firms.

The cable group, a unit of Grupo Clarin SA, defaulted on interest
payments in February and April, garnering a "default" rating from
Standard & Poor's.  The group's debts are estimated to reach
US$560 million.

Argentina's four-year recession, an 18-month advertising and
corporate spending slump, including the peso devaluation in early
January, are being blamed for the company's financial
difficulties.  The peso devaluation was specially debilitating
because the company has substantial dollar-denominated debts.


TELEFONICA ARGENTINA: Deadline for Bond Swap Set for June 21
------------------------------------------------------------
Holders of Telefonica de Argentina SA's (TASA) US$100 million in
9 7/8% bonds maturing July 1 have until noon, June 13 to avail of
a US$150 payout for every US$1,000 coupons they swap for a new
one.

Those who wait until the swap's closing date of 5 p.m. EDT, June
21 will only get US$100, according to Dow Jones Newswires.  The
Company is offering a new four-year bond with the same coupon in
exchange for the maturing notes.

Morgan Stanley & Co. Inc. and D.F. King & Co. Inc. are managing
the transaction, the report says.

Headquartered in Buenos Aires, Argentina, TASA is a
telecommunications service provider, which is 98%-owned by
Telefonica S.A.

CONTACTS:  TELEFONICA DE ARGENTINA
           Tucuman 1, 18th Floor, 1049
           Buenos Aires, Argentina
           Phone: (212) 688-6840
           Home Page: http://www.telefonica.com.ar
           Contacts:
           Carlos Fernandez-Prida Mendez Nunez, Chairman
           Paul Burton Savoldelli, Vice Chairman
           Fernando Raul Borio, Secretary

           MORGAN STANLEY, DEAN WITTER & COMPANY
           1585 Broadway
           New York, New York 10036
           United States
           Phone: +1 212 761-4000
           Fax: (212) 761-0086
           Home Page http://www.msdw.com
           Contacts:
           Philip J. Purcell, Chairman/Chief Executive
           Robert G. Scott, President & Chief Operating Officer

           Investor Relations
           E-mail: indivfeedback@morganstanley.com.
           Phone: (212) 762-8131

           D.F. KING & CO., INC.
           77 Water Street
           20th Floor
           New York, NY 10005
           Phone: 212-269-5550
           Fax: 212-509-6295
           E-mail: Webmaster@dfking.com
           Contact:
           Peter C. Harkins
           Mary Ellen Goodall
           Jennifer R. Wall



=============
B E R M U D A
=============

ANDERSEN: Pays Remaining Balance of US$217 Million Settlement
-------------------------------------------------------------
Narrowly averting even steeper penalties, Arthur Andersen LLP's
insurance company on Wednesday finished paying off a US$217-
million settlement with investors in the failed Baptist
Foundation of Arizona -- the largest non-profit bankruptcy in
history, says AP.

The accounting firm made an initial payment of $11.3 million when
the settlement was agreed to in May. The balance of the payment,
nearly US$206 million, was wired into the foundation's escrow
account Wednesday morning, said Sean Coffey, an attorney for the
foundation.

The settlement resolves civil cases against Andersen relating to
the firm's audit work for the collapsed Baptist foundation and
pending cases brought by state regulators and the Arizona
attorney general's office.

Had Andersen failed to pay the remaining balance of the
settlement on the deadline, Maricopa County Superior Court Judge
Edward Burke would have issued a judgment against Andersen to
enforce the settlement and set a payment schedule.

The revised schedule involves six payments with increasing
interest rates, culminating in a final installment on October 25.

Andersen backed out of an earlier US$217-million settlement,
saying its insurance company, the Hamilton, Bermuda-based
Professional Services Insurance Co., couldn't afford to pay it.
The firm then agreed to the new deal one week into a trial where
the foundation's trust sought US$150 million in compensatory
damages and more in punitive damages.


FOCUS INSURANCE: Issues Notice of Final Dividend On July 22
-----------------------------------------------------------
Focus Insurance Company Ltd., in Liquidation, intends to declare
a first and final dividend on July 22, 2002, under the provisions
of Rule 84 of the Companies (Winding-up) Rules 1982.

All known creditors have been sent a notification by Focus
Insurance Company Ltd, of the basis upon which their dividends
will be calculated.  Creditors who have not received such
notification, or who do not agree with the basis of calculation
of their dividend should submit a completed Proof of Debt form to
the Liquidator of Focus Insurance Company Ltd. - in Liquidation -
-Pricewaterhouse Coopers Dorchester House, 7 Church Street,
Hamilton HM 11, Bermuda-- on or before 5:00 pm (Bermuda time)
July 12, 2002.  Failure to notify the Liquidator in writing of
the disagreement with the basis of calculation, by submitting a
Proof of Debt form on or before 5:00 pm (Bermuda time) July 12,
2002, will result in exclusion from participation in payment of
the dividend to be declared.

Proof of Debt forms may be obtained from the Liquidator, Focus
Insurance Company Ltd. - in Liquidation at Pricewaterhouse
Coopers, P.O. Box HM1171 Hamilton HMEX Bermuda.

Peter C.B. Mitchell, Liquidator
Pricewaterhouse Coopers,
P.O. Box HM1171 Hamilton HMEX Bermuda
Phone: 441-295-2000
Fax: 441-295-1242


FOSTER WHEELER: Agrees to Basic Terms of New Loan Facilities
------------------------------------------------------------
Foster Wheeler Ltd. announced Wednesday that it has signed a term
sheet with its bank group, led by Bank of America, N.A., for a
$289.9 million bank credit facility.

On May 31, 2002, the Company announced that it had obtained
further extensions through June 30, 2002 of both its waiver under
its current revolving credit facility and the forbearance of
remedies for its lease financing facility. These extensions were
necessary in order to finalize the terms of a definitive
agreement.

"I am extremely pleased that we have reached preliminary
agreement on the terms of a new credit facility for the Company,"
said Raymond J. Milchovich, chairman, president and chief
executive officer. "Achievement of this milestone is excellent
news for all Foster Wheeler stakeholders."

Under the terms and conditions agreed to by the parties, the new
facility, which will mature in 2005, includes a term loan, a
revolving credit facility and a letter of credit facility. It
will be secured by a first-priority lien on Foster Wheeler's
domestic assets. This lien will be shared with holders of Foster
Wheeler's senior notes to the extent required by the senior note
indenture.

Finalization of this senior credit facility is subject to meeting
a number of conditions, including the refinancing or replacement
of Foster Wheeler's existing sale/leaseback facility for a
portion of its corporate headquarters, the replacement of its
recently terminated receivables securitization facility, and to
documentation acceptable to lenders.

Milchovich also said, "We are highly confident that the progress
toward obtaining a new credit facility and the financial
foundation this will provide, combined with the significant
improvements we are making in project operations and reducing
costs, will dramatically improve our ability to create value for
our worldwide customer base in the future."

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, design, engineering, construction, manufacturing,
project development and management, research, plant operation and
environmental services. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, N.J.
More information about Foster Wheeler can be found at the
company's Web site: www.fwc.com.


CONTACT:  Foster Wheeler Ltd.
          Media:
          Alastair Davie, 908/730-4444
          Shareholder:
          John Doyle, 908/730-4270
          Other Inquiries:
          908/730-4000


TYCO INTERNATIONAL: Analysts Predict Boca Raton-based Unit Sale
---------------------------------------------------------------
Tyco International Ltd. could eventually be forced to sell its
Boca Raton-based Fire and Security Division, analysts say. Tyco
needs to pay down US$14.2 billion in debt by the end of 2003 and
has been trying to unload its CIT financial unit in order to
raise money to lighten its debt load.

The Bermuda-based company believes it can get as much as US$7.2
billion for CIT through a public stock offering by the end of
June.

Late in May, Lehman Brothers reportedly retracted a US$5-billion
offer for the unit. Now, analysts are wondering if Tyco can get
even US$4 billion. If it can't, Tyco might consider selling more
of its assets, which could put Fire and Security into play.

"Right now, I would say the probability of (a Fire and Security
sale) is low," said analyst Rob Plaza with Morningstar in
Chicago. "It could become very real if they don't get enough cash
for CIT."

The Fire and Security Division includes alarm-monitoring business
ADT Ltd. and anti-shoplifting system maker Sensormatic
Electronics.

To see Tyco's latest financial statements:
http://bankrupt.com/misc/Tyco.txt

CONTACT:  TYCO INTERNATIONAL INC.
          Media Relations:
          J. Brad McGee or Peter Ferris
          +1-212-424-1300

          Investor Relations:
          R. Jackson Blackstock
          +1-212-424-1344
          Home Page: http://www.tyco.com

          CTI Group (Holdings), Incorporated
          333 North Alabama Street
          Suite 240
          Indianapolis, IN. 46204-1767
          Tel:317-262-4666
          Fax:317-262-4605
          Home Page: http://www.ctigroup.com/index.asp
          Contact: Brad Houlberg, Chief Executive Officer
          Email: dsauceda@ctigroup.com



=============
B O L I V I A
=============

RBG RESOURCES: Sells Vinto Tin Smelter For US$24 Million
--------------------------------------------------------
UK-based RBG Resources sold control of the Vinto tin smelter in
western Bolivia to a consortium made up of Britain's Commonwealth
Development Corporation (CDC) and Bolivian mining company Comsur
for US$24 million, reports Business News Americas.

"The plant is working fine, in fact I understand that today
[Wednesday] the CDC-Comsur consortium has taken possession of its
new assets at Vinto," a spokesperson for Bolivian state mining
company Comibol said.

The only problem is a month-long strike at the nearby Huanuni
mine, which supplies the smelter, but that dispute should be
solved by the end of the week, according to the spokesperson.

The strike is partly a reaction to worker resistance to being
taken over by Comsur, he added, although bonuses and other issues
were also behind the stoppage.

RBG, formerly Allied Deals, attributed its decision to sell Vinto
to its inability to comply with the investment plan under the
contract with the Bolivian state. The Company only invested US$2
million of the total US$10 million promised during the first two
years of operating the smelter.

The CDC-Comsur consortium will be given extra time to complete
the remaining US$8 million scheduled to be invested in the
complex.

Vinto is located 7.5km from the city of Oruro, at 3,728m above
sea level. The complex is made up of three smelters: the high-
grade tin smelter, started in 1971, with an annual production
capacity of 20,000t; the low-grade tin smelter, which started on
1979, with capacity of 10,000t/y; and the antimony smelter,
started in 1975 with capacity of 4,200t/y.

Early in May, RBG was placed in provisional liquidation, and is
currently under a US$600-million fraud investigation in London.

CONTACT:  RBG RESOURCES PLC
          105 Picadilly
          London
          W1J 7NJ
          Phone: 020 7491 7477
          Fax: 020 7491 7577

          EMPRESA METALURGICA VINTO
          (Vinto Foundry Company)
          Superintendente de Adquisiciones
          Casilla 612
          Oruro
          Phone: 5273091
          Fax: 5278024



===========
B R A Z I L
===========

AES SUL: Rationing Prompts Moody's Review For Possible Cut
----------------------------------------------------------
Moody's Investors Service put the Ba2 local currency rating and
the national scale rating of A1.br of AES Sul Distribuidora
Gaucha de Energia S.A. on review for possible downgrade.

Moody's said the action reflects the potential impact of a May
16, 2002 order of the Brazilian National Electric Power Agency
(ANEEL) questioning the settlement of rationing related costs.
The financial impact of any ANEEL ruling could be significant and
harm the repayment prospects of the outstanding debt, Moody's
said.

AES has already filed a request for injunction in Brazilian
federal court against the order. The filing states that the
latest ANEEL order purporting to retroactively change the
calculation methods of the Wholesale Energy Market violates
Brazilian law and practice on both procedural and substantive
grounds.

The net amount, after income taxes, related to sales by AES Sul
that is affected by ANEEL's retroactive order is approximately
US$120 million.

AES Sul Distribuidora Gaucha de Energia S.A. is a subsidiary of
U.S. company AES Corporation.

Contact:  AES Corporation
          Home Page: www.aes.com
            or
          Kenneth R. Woodcock
          Phone: 703/522-1315
            or
          Investor relations
          E-mail: investing@aes.com


BCI: Yet To Sell Two Investments Before Winding Down Operations
---------------------------------------------------------------
Bell Canada International Inc. (BCI), which recently closed a
US$366-million deal with America Movil for the sale of its stake
in Brazilian wireless telecommunications firm Telecom Americas,
still has two assets scheduled to go on the block before the
Company terminates its operations.

These two assets, according to a report by the Financial Post,
include 41.8 million shares in Canbras Communications, a
Brazilian broadband communications company, whose shares trade at
US$2.50, and privately held Mexican telecommunications company
Axtel SA.

BCI finance director Marie-Lise Gauthier said it would likely be
difficult to find a buyer for Axtel, a competitive local exchange
carrier, as there is currently little demand for that type of
company.

The telecommunications company announced it would seek approval
for a court supervised "plan of arrangement," which would allow
it to sell its remaining assets and "accelerate final
distributions to BCI stakeholders."

The Company said it would hold a meeting of its shareholders
during July to obtain the required approvals for the plan of
arrangement.

Gauthier said the Company will use the proceeds of the sale to
repay a US$200-million bank credit facility due on Aug. 9. The
Company will then have to repay US$160 million to noteholders and
a guarantee of US$32 million.

In 2001, BCI recorded a loss of US$541 million, and ran into
significant cash problems when BCE Inc., which owns 62.2% of BCI,
said it would limit its funding to the Latin telecommunications
operation.

BCI had been battered by economic volatility in Latin America and
was forced to exit all operations in the region except for those
in Brazil.

CONTACT:  BELL CANADA INTERNATIONAL INC.
          Marie-Lise Gauthier, 514/392-2318
          marie-lise.gauthier@bci.ca

          AMERICA MOVIL, S.A. de C.V.
          Lago Alberto 366, Colonia Anahuac
          11320 Mexico, D.F., Mexico
          Phone: +52-55-5703-3390
          Fax: +52-55-5545-5550
          Home Page: http://www.americamovil.com
          Contacts:
          Carlos Slim Helu, Chairman
          Daniel Hajj Aboumrad, CEO
          Carlos J. Garcia Moreno Elizondo, CFO

          CANBRAS COMMUNICATIONS CORP.
          1000 de la GauchetiŠre Street West Suite
          1240 Montr‚al, QC H3B 4Y7
          Tel:(514) 878-1232
          Fax:(514) 878-1600
          Contact:
          Canbras Communications Corp. - Brazil
          Phone: Tel: 55-11-715-6102

          Louis A. Tanguay, Chairman of the Board
          Patricia Olah, Vice-President, Corporate Affairs &
                                         Corporate Secretary

          AXTEL
          Av. Vasconcelos 210 Ote. Floor 12
          Col. Residencial San Agustˇn
          San Pedro Garza Garcˇa, N.L.
          C.P.66260 M‚xico
          Telephone: 8114 0000
          E-mail: contacto@axtel.com.mx
          Home Page: http://www.axtel.com.mx/English/default.asp


BCI: Sale May Lead to Moody's Debt Rating Upgrade
-------------------------------------------------
The pending sale of BCI's stake in Telecom Americas to America
Movil SA led Moody's Investors Service to place BCI's senior
unsecured and issuer ratings, currently `Ca,' under review for
possible upgrade.

Moody's believes that the upcoming transaction and BCI's
remaining assets may provide sufficient funding to fully repay
BCI's bank loans, notes and guarantees, although this is
dependent on the outcome of several pending lawsuits against BCI.

If the sale is approved by shareholders and noteholders, closing
is scheduled to occur on or before August 9, 2002, at which time
the bank loan will be repaid and cancelled.

The sale would leave BCI with assets consisting of approximately
CAD$100 million of cash, CAD$340 million of notes due from
America Movil in March 2003, 76% of Canbras, and 28% of Axtel.

Its liabilities would consist of CAD$160 million of notes and an
approximate CAD$50 million guarantee of debt of the Vesper
companies, Brazilian competitive local exchange carriers.

BCI was sued in April 2002 for CAD$285 million by several holders
of its convertible debentures, which matured February 2002 and
also provided an indemnity related to a US$70 million lawsuit in
Colombia.

The recovery on BCI's notes will depend on resolution of the
lawsuits and guarantee.

According to Moody's, the review will be dependent on the
successful closing of the transaction. The ratings agency will
evaluate developments, positive and/or negative, with respect to
the convertible debenture and Colombia lawsuits and the Vesper
guarantee.

Debt affected by this action: CAD $160 million 11% senior
unsecured notes due September, 29, 2004. The notes are redeemable
by BCI at any time, priced on a yield to maturity basis.

Bell Canada International Inc. is a holding company for Latin
American wireless and cable investments, and it is headquartered
in Montreal, Quebec, Canada.


ELETROPAULO METROPOLITANA: Moody's Reviewing For Possible Cut
-------------------------------------------------------------
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A., the
largest electric distribution company in Brazil, is now under
Moody's Investors Service's review for a possible downgrade.

The rating affected is the Company's Baa2 local currency issuer
rating.

Moody's is concerned about Eletropaulo's refinancing of US$414
million in debt due in August and September of this year. In
repaying this amount, Eletropaulo is likely to get cash from
proceeds of BNDES funded loans based on the recent tariff
increases granted to refund the losses generated by power
rationing, additional international commercial paper to be issued
(US$ 150 million in current availability) and/or a long term bank
transaction to replace existing bank facilities which comprise
roughly 50% of the debt maturities.

The company anticipates several international capital market
financings, subject to market conditions, which currently appear
unfavorable, Moody's said. Given the short time frame of
potential problems, Moody's expects the review will be completed
on an expedited basis. Possible outcomes include a multi-notch
downgrade.

With a predominantly short-term capital structure (52% short term
debt) reflecting lending patterns in Brazil, Moody's believes
that Eletropualo presents significant financial risks to
investors as the company continually faces refinancing risks in
volatile local and international markets.

CONTACT: ELETROPAULO METROPOLITANA
         Avenida Alfredo Egidio de Souza Aranha 100-B,
         13 andar 04726-270 San Paulo
         Brazil
         Phone: +55-11-548-9461, +55 11 5696 3595
         Fax: +55-11-546-1933
         URL: http://www.eletropaulo.com.br
         Contacts:
         Luiz D. Travesso, Chairman and President
         Orestes GonOalves Jr., VP Finance/Investor Relations


ENRON: Creditors Agree To Renegotiate Debt With Italian Bank
------------------------------------------------------------
Creditors of collapsed U.S. energy group Enron had agreed to
renegotiate US$203 million (EUR217 million) of loans extended by
Italy's biggest bank IntesaBCI, Reuters reports, citing the
Italian bank.

The loans were made to Enron's Brazilian unit, ETB, the bank
said. Earlier, an Intesa spokesman said the loans totaled EUR230
million.

Enron filed for bankruptcy protection early December 2001 in the
largest Chapter 11 case ever after Dynegy Inc. abandoned its
US$23 billion takeover of the Houston-based energy trader. Enron
listed about US$40 billion of debt, including off-balance-sheet
project financing.

CONTACTS: Mark Palmer of Enron Corp., +1-713-853-4738
          Enron Corp.
          Investor Relations Dept.
          P.O. Box 1188, Suite 4926B
          Houston, TX 77251-1188
          (713) 853-3956
          Email: investor-relations@enron.com

          Enron Corp.
          Public Relations Dept.
          P.O. Box 1188, Suite 4712
          Houston, TX 77251-1188
          (713) 853-5670

          INTESABCI
          Registered Office
          Piazza Paolo Ferrari, 10
          20121 Milano

          Head Office
          Via Monte di Piet…, 8
          20121 Milano
          Phone: 02.8844.1
          Fax: 02.8844.2138
          E-mail: info@intesabci.it
          Contacts:
          Investor Relations
          Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
          E-mail: investorelations@intesabci.it

          Andrea Tamagnini
          Tel: (39) 02 8850 3180

          Marco Delfrate
          Tel: (39) 02 8850 2622

          Cristina Paltrinieri
          Tel: (39) 02 8850 3571

          Carla De Alberti
          Tel: (39) 02 8850 3159

          Giorgio Grossi
          Tel: (39) 02 8850 3189

          Anna Gervasoni
          Tel: (39) 02 8850 3466

          Maria Vittoria Buscicchio
          Tel: (39) 02 8850 7114


          Manuela Banfi
          Tel: (39) 02 8850 3273


PREVI: Court Rules On Government Administration
-----------------------------------------------
A former benefits manager and the union representing Banco do
Brasil employees contributing to Caixa de Previdencia dos
Funcionarios do Banco do Brasil (Previ) lost in their quest to
block the government's takeover on Monday of Latin America's
biggest pension fund, reports Bloomberg.

Superior Justice Court Judge Eliana Calmon rejected their
requests for injunctions, saying that the takeover of the
BRL36.8-billion (US$14.1 billion) fund would not prevent its
contributors from supervising its management.

Failure to carry out management changes demanded by the
government a year ago led Brazil to throw out Previ's board.

Under government rules, Previ should have six board members with
half representing contributors and the other three representing
Banco do Brasil, the country's largest bank. A member named by
the bank should have a tie-breaking vote. PREVI, though, had
seven board members with four members representing contributors
and was also in breach of rules on the composition of its audit
board.

"We tried to get an injunction because the intervention implies a
breach of contract by the government," said Jacques Pena,
president of the bank workers' union in Brasilia. "We're talking
to our lawyers and we'll be looking for other solutions."

However, Jose Cechin, Brazil's social security minister said,
"the intervention is an act based on law, and the court has
supported us."

"There's no political motivation behind this action. We didn't
want to intervene but we had to and we want to make it limited
and very fast." Once a new board is elected, the takeover will
end, Cechin added.

PREVI, more than four times bigger in assets than the second-
biggest Brazilian pension fund, has 310 seats on boards of 94
companies.

CONTACT:  PREVI-CAIXA DE PREVIDENCIA DOS FUNCIONARIOS DO BANCO
          DO BRASIL
          Praia de Botafogo 501 - 3  E 4  and
          Rio de Janeiro
          22250-040
          RJ
          Phone: (21) 3870-1030
          E-mail: presi@previ.com.br
          Home Page: http://www.previ.com.br/

          BANCO DO BRASIL
          SBS Edificio Sede III, 24th Fl.
          70089-900 Braslia, D.F., Brazil
          Phone: +55-61-310-3406
          Fax: +55-61-310-2563
          Home Page: http://www.bb.com.br
          Contact: Marco Geovanne Tobias da Silva, IR Manager
          Phone: 61-310-5920



===============
C O L O M B I A
===============

AES GENER: Postpones Asset Sale Pending Better Economic Times
-------------------------------------------------------------
AES Gener SA, Chile's third-biggest energy generator, has decided
to delay the sale of its Latin American assets, preferring to
wait for improvements in market conditions, says Estrategia/SABI.

The company had earlier placed on the block Termoandes and
Interandes, which are both controlled by Gener Argentina.  Its
Colombian unit Chivor, which successfully renegotiated US$335
million in bank debts recently, is also part of the package.

The assets of the Argentinean units are worth between US$500
million and US$700 million, the report says.  The two, however,
reported losses of ARS4 billion in the first quarter.  The
decision not to sell at this point is primarily due to
apprehensions that the units would fetch less than their value
due to the depressed market conditions.

The company is a unit of AES Corp., an American energy firm based
in Arlington, Virginia.

CONTACT:  AES GENER S.A.
          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page: www.gener.com
          Contact:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer

          CHIVOR S.A. E.S.P.
          Bogota, Distrito Capital
          Cl 98 22-64 Of 518
          Tel: (57) (1) 6236660 - Fax: (57) (1) 6236837
          Email: chivorbo@cable.net.co

          TERMOANDES S.A.
          Av. Libertador 602 Piso 13
          (C1001ABT), Buenos Aires.
          Tel.: 4816-1502
          Fax: 4816-6605
          E-mail: infoandes@aesc.com



===========
M E X I C O
===========

AEROMEXICO: Forecasts Continued Negative Results
------------------------------------------------
Alejandro Yberri, director of Marketing and Services at
Aeromexico, expects that the Mexican airline would continue to
report lower figures in May, as well as in June, despite the
appearance of the first signs of economic recovery.

This year, Aeromexico would report losses similar to those seen
last year, the director said without quoting any figures.
According to Yberri, even though there have been signs of
economic recovery, the air industry is still showing unfavorable
results.

The airlines are still reeling from the aftermath of the
September terrorist attacks in the United States and are being
battered by the drop in airfares. Problems of the airlines are
worsened by the fact that airfares are governed by the law of
supply and demand, which caused inequalities between companies.

Yberri said that order was required in the sector so that
companies could compete on an equal footing. If this did not
occur, "everyone will lose out," Yberri said.

Aeromexico is one of the companies controlled by holding company
Cintra SA that are set to go on the auction block this year. The
other one is Mexicana de Aviacion. The airlines, which account
for 75 percent of domestic air travel in Mexico, are to be sold
off separately. Merrill Lynch & Co., the third-largest global
mergers and acquisitions adviser, recently won a mandate to
manage the sale.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com

          CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx


BURLINGTON INDUSTRIES: Mexican Ops Survive Restructuring
--------------------------------------------------------
With the completion Friday of the sale of its bedding and window
consumer products businesses and approval by the Court last week
to sell its residential upholstery fabrics business, Burlington
has established the future structure and the strategic direction
for the Company.

"Only seven months into our reorganization and thanks to the hard
work and efforts of many people, we have accomplished the
strategic objectives of the Company's reorganization as outlined
in November," said George W. Henderson, III, Chairman and Chief
Executive Officer. "We are moving aggressively to implement these
actions and move forward as a stronger, more competitive company.
Our actions remain focused on creating a solid base on which to
grow our company and position us to effectively provide products
that bring distinction and value to the market."

The Company's new structure, which is centered on elevating the
Company's ability to bring innovation and distinctive products to
the market, includes the following businesses:

Lees Carpets - Lees continues to be a market leader in commercial
floorcovering with a reputation for innovation and performance.

Burlington House - Going forward the Burlington House division
will focus on fabrics for mattress coverings, bedding and window
consumer products and high-performance commercial interior
fabrics.

Burlington WorldWide - Burlington WorldWide is the Hong Kong
based, global marketing and product development organization to
develop, source and distribute technology based fabrics
worldwide.

Burlington Apparel Fabrics - Burlington Apparel Fabrics is a
leader in synthetics, wool and differentiated denim with plants
in the United States and Mexico.

Nano-Tex, LLC - Through our investment in and partnership with
Nano-Tex, LLC, the Company is providing technology, advanced
performance and distinctive innovation across the diverse range
of Burlington products.

Henderson concluded, "We are pleased with the progress of our
reorganization and our early results are very encouraging. Our
plan is forward-looking and we are committed to transforming the
Company to be a leading global competitor. With the structure in
place, our focus will be on implementing the necessary changes
and moving forward as a new company."

Burlington Industries, Inc. is one of the world's largest and
most diversified manufacturer and marketer of softgoods for
apparel and interior furnishings. Burlington Industries filed
voluntary petitions for Chapter 11 under the U.S. Bankruptcy Code
on November 15, 2001.

CONTACT:  Burlington Industries, Inc.
          Home Page: http://www.burlington-ind.com
          Ross Haymes, Analyst
          Phone: +1-336-379-2788,
           or
          Delores Sides, Analyst
          Phone: +1-336-379-2303


FAR-BEN: Investment Fund Buys Unspecified Stake For MXN553.5 Mln
----------------------------------------------------------------
Promotora Mexicana de Capitales (Promecap), an investment fund
partly owned by Hungarian-born financier George Soros, paid
MXN553.5 million (US$54.8 million) for the acquisition of an
unspecified stake in Farmacias Benavides (FAR-BEN), Mexico's
largest pharmacy chain, reports Bloomberg.

According to Far-Ben spokesman Victor Trevino, Promecap, which is
composed mainly of U.S. investors including Soros' Quantum Fund,
will provide the capital to help Far-Ben meet debt payments. Far-
Ben has about MXN700 million in debt maturing this month.

"On Monday, our board of directors met to approve the
transaction," Trevino said. "More than anything, this is to help
us face our debt obligations."

Far-Ben has seen its profits slump in the last five years as
grocery chains such as Wal-Mart de Mexico SA added in-store
pharmacies and offered medicines at discount prices. Sales fell
12% last year to MXN5.07 billion. Operating income at the chain
fell to MXN37 million last year from MXN214 million in 2000,
according to Bloomberg analytics.

Prior to the transaction with Promecap, Far-Ben was 53%-owned by
Mexico's Benavides family, according to Trevino. He said he
didn't know who owned the remaining 47 percent.

Far-Ben is based in Monterrey and operates about 640 Benavides
pharmacies.

CONTACT:  BENAVIDES (FAR-BEN S.A. DE C.V.)
          Benavides (Far-Ben S.A. De C.V.)
          602 Pino Suarez South Central
          Monterrey Nuevo Leon
          Mexico
          Phone: +52 50 77 00
          Fax: +52 89 99 31
          Home Page: http://www.benavides.com.mx/
                    Contact:
          Investor Relations
          E-mail: inversionistas@benavides.com.mx
             or
          Enrique Javier Villarreal Bacco, CFO
          Guillermo Benavides Arredondo, COO
          Miguel Carlos Peinado Gonz lez, Purchasing and
                                          Merchandising VP
          Fernando Benavides Sauceda, Chief Information Officer


RAINTREE RESORTS: Misses Interest Payment; S&P Lowers to Default
----------------------------------------------------------------
Standard & Poor's said Wednesday it lowered its long-term
corporate credit rating on Raintree Resorts International Inc. to
'D' (default) from triple-'C'. The rating action follows the
company's failure to pay a US$6.1 million coupon due June 1,
2002, on its US$94.5 million outstanding senior notes maturing
2004.

Although the company is negotiating with Leisure Industries Corp.
the sale of the Whisky Jack Resorts Ltd. and Teton Club Jackson
Hole resorts, and an interest on the Cimarr˘n Golf Resort, to
obtain the funds to make the interest payments, Standard & Poor's
does not have sufficient evidence that the payment can be made
soon as the timing for these sales is still uncertain.

Raintree is a developer, marketer, and operator of luxury
vacation ownership resorts in North America with resorts in
Mexico, the U.S., and Canada.

To see Financial Statement: http://bankrupt.com/misc/RAINTREE.htm

CONTACT:  RAINTREE RESORTS INTERNATIONAL INC
          10000 Memorial Drive, Suite 480
          Houston, Texas 77024
          Telephone: (713) 613-2800
          Home Page: http://www.raintreeresorts.com/
          George E. Aldrich, Senior VP - Finance/Accounting





               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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